Solution-Compute the internal rate of return of the

Compute the internal rate of return of the investment

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Reference no: EM133085354

Question - Topic - Capital Budgeting - ABC Corporation made a net investment of P500,000 in a vending machine. Over the five years of its useful life, the machine is expected to have net cashflows of P250,000, P200,000, P80,000, P75,000 and P50,000. Assuming the incremental cost of capital was 9%.

Required -

A. Compute the discounted payback period in years of the vending machine?

B. Compute the internal rate of return of the investment?

Reference no: EM133085354

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Compute the internal rate of return of the investment

Reference no: EM133085354

Reference no: EM133085354

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